What a Post-American World means for Europe

In recent months, Europe has learned some hard lessons about its transatlantic partner. President Barack Obama triggered great hope when he replaced George W. Bush at the American helm. But a year later, especially following Obama’s failure to produce anything of substance at Copenhagen, Europeans are realizing that Obama is going to have a difficult time delivering on a new American agenda.

Why is Obama so unable to match his lofty speeches with concrete deeds? There are two major reasons.

First, despite his inspiring rhetoric, Obama is no social democrat or even a Franklin Roosevelt. He is a pragmatic Democrat with some progressive sympathies, but like Bill Clinton he will not allow his progressive leanings to get in the way of his pragmatism. Second, and partly the cause of his pragmatism, he needs votes from 60 out of 100 senators to get any major policy passed – meaning that the 40 Republican senators (who represent only a third of the nation), joined by a single conservative Democrat, can halt everything. It’s the worst form of ‘minority rule’, and as a result America can’t even get right something as basic as health care.

Obama is probably the best leader America can produce; yet even he can’t deliver because the American political system, rooted in its 18th century origins, is too antiquated and backward. This situation will not change anytime soon due to the difficulties of amending the US Constitution.

So the US will remain by far the largest per capita polluter in the world; it will continue to foot drag over re-regulation of the global financial system that it caused to melt down; it will resist badly needed domestic reform that would make it a manufacturing nation again instead of remaining a debtor nation; America’s leaders will continue to refuse to give families and workers the support and security they deserve; and they will continue to spend money the nation can ill afford on military escapades in the Middle East, as Obama prods Europe to join him in his folly. This is Obama’s America.

But Obama’s failures only continue the American slide that began at the start of the decade. A gradual shift in geopolitical power has been occurring, which some have called the ‘post-American world’. Even US Secretary of Defense Robert Gates has acknowledged that American primacy is over and the world is suddenly multipolar. The United States is still a strong power, but this shift has been a shock to Americans, some of whom are still in denial.

So what should be Europe’s strategy in this post-American world? First and foremost, Europe must remain the beacon of social democracy, which can be defined as the attempt to harness the dynamic, wealth-creating engine of capitalism so that its prosperity is both broadly shared and ecologically sustainable. I refer to this as the European Way, a development model that is the most humane in history. If the European Way didn’t exist, we would have to invent it.

But as the world stares into the face of the twin challenges of the current economic crisis and global warming, the fate of this European Way hangs in the balance. To defend it, Europe needs to know what is precious about it, and what is worth defending.

First, the European Way is founded on a ‘social capitalism’ that has produced the world’s largest trading bloc, nearly a third of the world’s economy, almost as large as the US and China combined, with more Fortune 500 companies than even the US. Yet unlike America’s ‘Wall Street capitalism,’ Europe’s brand provides real support for families and workers. Hardly a ‘welfare state,’ Europe’s social capitalism is an ingenious ‘workfare’ framework that better supports families and individuals to help them stay healthy and productive in an age of global capitalism that, left to its own devices, would turn us all into internationally disposable workers.

A key to Europe’s harnessing of the capitalist engine has been regulations fostering a measure of economic democracy and control over corporations, resulting in practices like co-determination, works councils, cooperatives, public-private partnerships, and a vibrant small business sector, which provides two-thirds of all jobs in Europe. In addition, the European Way is founded on pluralistic political institutions that have fostered a vibrant multiparty democracy, including proportional representation, public financing of campaigns, free media time for parties, universal voter registration, a robust public broadcasting sector, and other important democratic advances. It has fostered the ‘green economy,’ deploying widespread use of conservation and renewable energy technologies, which has produced an ‘ecological footprint’ that is half that of the United States, even as it has created hundreds of thousands of new jobs.

These ‘fulcrum institutions’ are the very foundations of the European Way, and I am sometimes struck by how many Europeans take them for granted, apparently unaware of their uniqueness and value. Europe must defend them and not allow anti-democratic forces to wear them down.

Despite all its own imperfections and inconsistencies, and its soul-searching and doubts, Europe must recognize that it is now the key leader among multiple leading nations of the world. Europe now is what Ronald Reagan once called America – ‘the shining City on the Hill’, pointing the way amidst the darkness of the storm.

A provocative, remedy-based perspective on the joint complexities of economic stability and ever expanding technology.–Kirkus Reviews

“Hill hits Silicon Valley darlings like Uber and Airbnb alongside the former online black market Silk Road, right-to-work laws, and factory robots all under the umbrella of “naked capitalism.” He explains how the rise of the “1099 workforce” is not limited to Silicon Valley; more and more traditional jobs in fields like manufacturing are turning to contractors to perform the same tasks full-time employees used to do. In addition to costing workers in benefits and safety nets, misclassifying workers as contractors costs federal and state governments billions of dollars annually in lost tax revenue.” ―Washington Monthly

“For anyone driven crazy by the faux warm and fuzzy PR of the so-called sharing economy Steven Hill’s Raw Deal: How the “Uber Economy” and Runaway Capitalism Are Screwing American Workers should be required reading… Hill is an extremely well-informed skeptic who presents a satisfyingly blistering critique of high tech’s disingenuous equating of sharing with profiteering…Hill includes two chapters listing potential solutions for the crises facing U.S. workers…Hill stresses the need for movement organizing to create a safety net strong enough to save the millions of workers currently being shafted in venture capital’s brave new world.” ―Counterpunch

“A growing underclass scrambling to make ends meet at the whim of increasingly picky and erratic employers, that number could balloon to 65 million within 10 years, or about half of the domestic workforce, warns Steven Hill in his troubling new book, Raw Deal. This brand of worker abuse cuts across industries and company size. Hill calls out Uber, AirBnb, Merck, Nissan, and dozens of others. Hill does a nice job of putting it in starker, easier-to-understand ways.” ―Washington Independent Review of Books

“Steven Hill’s book Raw Deal is a red-faced, steam-out-the-ears indictment of sharing apps. Yet Hill offers a pragmatic, almost post-ideological solution: “individual security accounts” for workers. Companies that use independent contractors, or offer scant benefits for employees, would have to add on a certain percentage of their pay as a contribution to those accounts, which would cover health care, unemployment insurance, and more. There’d be a mechanism ― and a requirement ― for companies to contribute to the long-term well-being even of workers who aren’t on their traditional payrolls.” ―Boston Globe

“Raw Deal is a book for its time. Steven Hill perfectly captures the anxiety of the American worker in today’s increasingly digital economy. Hill presents some compelling ideas, the most important being something he calls the Economic Singularity. In this unfortunate tipping point, the concentration of wealth in the hands of the few results in economic implosion because the 99 percent can’t afford to buy anything the 1 percent has to sell. The United States is turning into a nation of 1099 workers who eke out a living driving cars, renting rooms and running errands for people who apparently have better things to do with their time. Throw in self-thinking computers and obedient robots, and there won’t be any work left for plain old Homo sapiens…Hill proposes that we offer 1099 workers a new safety net consisting of tax deductions, individual security accounts and multiemployer health care plans. All good ideas.” ― San Francisco Chronicle

This book is a must read for those concerned about how technology is disrupting the way we work and eroding the social safety net, and how policy makers should respond to ensure that the growing number of workers in the “gig” economy earn adequate benefits.—Laura D’Andrea Tyson, UC-Berkeley and former Chair of the US President’s Council of Economic Advisers

“Steven Hill’s groundbreaking book on the part-time, unstable ‘Uber Economy’ shows how a new sub-economy becomes a work of law-flouting regress undermining full-time work. Remote corporate algorithms run riot!”— Ralph Nader, consumer advocate

For many years, Steven Hill’s analysis, commentary and activism have helped shape our understanding of the U.S. political economy. His latest book, Raw Deal is A riveting expose that shows with alarming lucidity what Americans stand to lose if we don’t figure out how to rein in the technological giants that are threatening the American Dream.–Katrina vanden Heuvel, editor and publisher of The Nation

In Raw Deal, Steven Hill documents in frightening detail the ways in which new forms of work promise to plunge US workers and their families into further economic hardship, risk-assumption, and instability. Fortunately, Hill does not simply anticipate catastrophe; he closes the book with an informed call for institutional reforms that would lessen the negative consequences of these potentially dangerous forms of work. Anyone concerned with US working conditions – whether American workers, worker advocates, labor market scholars, or policy-makers – must read this book .— Janet C. Gornick, Professor of Political Science and Sociology, Graduate Center, City University of New York, Director, LIS: Cross-National Data Center in Luxembourg

Praise for Expand Social Security Now

“Read this book before you vote. Few issues are more important to your personal economic future. Steven Hill shows what’s at stake, and he offers solutions that Americans of all stripes can agree on.”—Robert B. Reich, author of “Saving Capitalism: For the Many, Not the Few”

“Steven Hill has written a barn burner of a book. Or perhaps I should say ‘myth buster,’ because he systematically demolishes the false justifications for slashing Social Security. In place of misplaced animus and misleading arguments, he offers a strong case for dramatically expanding America’s most successful domestic program in an age of rising inequality and widespread financial insecurity.”—Jacob S. Hacker, coauthor of “American Amnesia: How the War on Government Led Us to Forget What Made America Prosper”, Professor, Yale University

“Steven Hill has written a vigorous defense of Social Security, the country’s most important social program. While most political debate in recent years has focused on ways to cut Social Security or privatize it, Hill goes in the opposite direction and argues for a robust expansion. Hill proposes a Social Security program that would be adequate by itself to support a middle-class retirement.”—Dean Baker, co-founder of the Center for Economic and Policy Research, and author of “Getting Back to Full Employment: A Better Bargain for Working People”

“Steven Hill has produced a dynamite handbook for angry Americans who seek to take back democracy. The true contest is not Republicans versus Democrats. It is the American people versus Washington. And this is the sleeper issue the people can win. The governing elites in both parties are trying to eviscerate Social Security—arguably the most successful and most popular program created by the federal government. Hill explains why the political insiders and their Wall Street patrons are wrong about Social Security. He shows us how to mobilize to defeat the power elites and expand Social Security rather than destroy it.”—William Greider, author of “Come Home, America: The Rise and Fall (and Redeeming Promise) of Our Country”

Praise for Europe’s Promise

Financial Times: “Steven Hill is a lucid and engaging writer. He makes you sit up and think.”

The Economist: “In a new book, Steven Hill extols the European social contract for better government services. Life in Europe is more secure, he argues, and therefore more agreeable.”

Hendrik Hertzberg, The New Yorker: “Like a reverse Alexis de Tocqueville, Steven Hill dauntlessly explores a society largely unknown to his compatriots back home.”

Andrew Moravcsik, Foreign Affairs: “Europe’s Promise is a timely and provocative book . . . the “social capitalist” policies of European countries represent best practices in handling most of the challenges modern democracies face today.”